Thousands of jobs are at risk as social housing firm Connaught prepares to enter into administration.

Connaught called in administrators KPMG last night after lenders refused to help the struggling firm.

The company, which employs 10,000 staff, has been in financial difficulty since June with debts of £220 million.

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Connaught said: "It is now clear that sufficient support will not be extended to the group as a whole to enable it to continue trading."

The company currently has around £180 multi million pound social housing contracts, however its shares have now dropped by more than 90%.

In July, Connaught admitted its debt was soaring and agreed an additional £15 million short-term overdraft facility.

(CD/KMcA)